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Franchising Opportunity

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Society moves at a fast pace and the connections that we always felt to our neighbors, our neighborhoods and our communities have become much less important than they used to be. We don’t take time to relax, to practice the art of conversation and to get to know one another anymore. Imagine a place where that begins to change. A community gathering place where people in your community congregate to re-connect and to “Come Together.” A place where we can celebrate each other’s talents, connect to technology or just enjoy a great cup of tea or coffee, espresso or a cocktail and talk to our friends and neighbors.

This is what the Tea Lounge Opportunity is all about. We are not your typical coffee house franchise opportunity though… We see ourselves in a very unique way. We are the “Unfranchise.” That means you get to be your own boss, to have impact and independence, to make decisions yourself about the things that make sense in your community. Let your entrepreneurial spirit thrive… Join the Tea Lounge and “come together” in our community today.

We are looking for highly self-motivated business minded people searching for independent ownership. We look for franchisees that are outgoing and dedicated to building connections within the community. Our franchisees must also be financially qualified.

* Earn $2500 if you refer someone who becomes a franchisee *

How much is my franchise fee and what is included?
The franchise fee is $25,000. Included in the fee is an exclusive territory, use of the Tea Lounge brand name, operating systems, logo, trade dress, comprehensive training program and ongoing support.

What are the ongoing fees?
The franchise royalty is 5%. We discount the royalty for the first four months of operations to 2.5% to give you time to build your customer base and grow your business. There is also 1% brand development fee.

What do I need financially to open a Tea Lounge?
We require potential franchisees to have a minimum of $400,000 net worth with at least $100,000 in liquid capital.

Is financing available?
Yes, there are many ways to finance your Tea Lounge. While we do not provide direct financing to franchisees, we will discuss various financing options including traditional SBA loans, home equity loans, and retirement fund rollovers.

How much money can I make?
The amount of money individual cafe franchise businesses can expect to make will vary depending upon a multitude of factors. Tea Lounge does provide a financial performance representation within our Franchise Disclosure Document which you will receive during the sales process.

What kind of training will I receive?
You will receive 10 days of training at our location in Park Slope, Brooklyn, NY covering Tea Lounge Systems and Procedures, Food Safety, Customer Service, Finance, Administrative Procedures, Event Planning and Local Store Marketing.

What kind of support will franchisees get?
The Tea Lounge provides its franchisees with support from site selection approvals to store opening assistance, training, ongoing consultation, marketing programs and materials, new products and more.

How long does the application process take??
It generally takes up to 6 weeks between the time you first fill the application until you attend the personal interview. Once approved, how long would it take to open the location?? This time varies from location to location, but it generally takes about six months after signing the Franchise Agreement before you will be ready to open for business.

Once approved, how long would it take to open the location??
This time varies from location to location, but it generally takes about three to six months after signing the Franchise Agreement before you will be ready to open for business.

* Earn $2500 if you refer someone who becomes a franchisee *

Tea Lounge is a low start up cost franchise opportunity.
Estimated costs associated with the start up of a Tea Lounge business are outlined below.

Type of Expenditure

Amount

Initial Franchise Fee

$25,000

Leasehold Improvements, Construction Cost

$35,000 to $60,000

Blueprints

$500 to $3,000

Rent – 3 Months

$12,500 to $24,000

Furnishings, Fixtures Equipment

$35,000 to $75,000

Complete Signage

$3,000 to $5,000

Point of Sale System

$2,500 to $5,000

Travel & living expenses while training

$0 to $2,000

Pre-Opening Expenses

$3,000 to $5,000

Professional Fees

$2,500 to $5,000

Licenses and Permits

$500 to $2000

Grand Opening Advertising

$2,000 to $4,000

Opening Inventory

$7,000 to $10,000

Insurance – 3 Months

$2,250 to $3,750

Additional Funds – 3 Months

$10,000 to $15,000

TOTAL

$140,750 to $243,750

Step 1: Inquire
The first step in joining Tea Lounge is to complete the short initial inquiry form. A member of our team will contact you and answer your initial questions. If the opportunity sounds right, you will complete an application.

Step 2: Learn about the opportunity
We want to get to know you and you need to get to know us. We will conduct a series of personal phone calls, webinars and/or an in person discovery day so that we both can learn more about each other.

Step 3: Research and due diligence
We will continue to be available to answer your questions as you contact other franchisees, research your territory and determine if the Tea Lounge opportunity is right for you.

Step 4: Join the Team
If we both determine that you will be a good fit in the Tea Lounge franchise system, we will issue franchise agreements and begin training.

* Earn $2500 if you refer someone who becomes a franchisee *

What others are saying about the Tea Lounge franchise opportunity:

World Tea News: Tea Lounge Franchise Opens in Kuwait

KUWAIT CITY, Kuwait – A dozen years thriving in a New York City neighborhood affirms Jonathan Spiel’s vision that a local tea and coffee shop helps establish a sense of community.

Kuwait entrepreneur Mohammed Al-Arbash was so impressed he asked if Spiel could export his concept. Tea Lounge accepted the challenge and opened an 800 sq. ft. franchise location in a suburban strip mall.

“This idea of creating a community-based environment in a cafe felt very appealing to me. It had to be a place where people could feel at home. I have tasked my employees with building these relationships that will support the community so in turn, the community will support us,” Spiel explained.

Tea Lounge Franchise featured in New York Times and International Herald Tribute

After twelve years of running two small, organic tea shops in the New York borough of Brooklyn, Jonathan Spiel had to close one down when his landlord increased the rent in 2009. Facing that setback, Mr. Spiel decided to look into selling Tea Lounge franchises to expand into new markets and keep his business going.

Tea Lounge blends into Kuwaiti culture, which emphasizes gathering over tea and whose per-capita income is the world’s fifth highest. “It’s a booming economy,” Mr. Spiel said. “It’s a very social culture, which fits in great with my concept.”

That concept is part café, part bar and part live-music venue. Mr. Spiel said the Kuwait outpost’s menu will add cheesecake, a local favorite, and will leave out the alcohol and prosciutto sandwiches.

Becoming a franchise owner is hard work—in addition to learning about the company you’re working with, the process involves communicating with customers, running numbers, publicity and everything in between. But, Spiel notes, there are perks: “All the legwork—from concept to implementation—is already done for you.”

“I went through all the café franchises,” said Jonathan Spiel, Tea Lounge’s owner. “There’s nothing else like this, that has the café/entertainment/bar feature.”

Now he has decided to turn Tea Lounge into a franchise and recently signed a deal with his first franchisee, a Kuwaiti businessman named Mohammed al Arbash who plans to open his first Tea Lounge in a Kuwait City shopping mall in November.

The region also has robust consumer culture, said Jonathan Spiel, owner of Tea Lounge in Brooklyn, N.Y., whose first franchised agreement will cover not the United States but Kuwait.

“It’s a very social culture, and going to malls and socializing is a big part of their day,” Spiel said. “Because of that, the malls there are unbelievable: Every brand you can think of is there, and the locals want to develop something unique and cool.”

For Jonathan Spiel, CEO of the Tea Lounge, all hires need to “play well with others.” Spiel said he often looks for people with ‘big heads’ when hiring, a term he uses to describe a person who takes their own initiative without being told to do so.

The Tea Lounge — the neighborhood’s longtime home for laptop-clacking writers and mommy meet-up groups — will become a chain with in-the-works franchise locations under consideration in Long Island, Virginia, and Kuwait, said owner Jonathan Spiel.

What it really comes down to is tapping into Speil’s experience in opening and closing businesses. “There’s the Franchise fee,” he explained. “There are capital costs. But really, if you are going to get into the restaurant business, you need to learn how to not get screwed by a plumber, or to not spend thousands on a piece of equipment that sucks. The franchise fee is probably smaller than what you’ll spend figuring things out on your own.”Read more »

Notice Regarding Franchise Offers and Sales
a. This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. There are approximately 14 countries and 15 US states that regulate the offer and sale of franchises. The countries are Australia, Brazil, Belgium, Canada (provinces of Alberta and Ontario), China, France, Indonesia, Italy, Japan, Malaysia, Mexico, Russia, South Korea, Spain, and the United States of America. The US states are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states or countries, are receiving this message in one of these states or countries, or intend to operate a franchise in any of these states or countries, we will not offer you a franchise unless and until we have complied with any applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction.

b. This offering is not an offering of a franchise. In New York (USA), an offering of a franchise can only be made by a prospectus that has been previously filed and registered with the Department of Law of the State of New York. The application for registration of an offering prospectus or the acceptance and filing thereof by the Department of Law as required by the New York law does not constitute approval of the offering or the sale of such franchise by the Department of Law or the attorney general of New York.

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* Earn $2500 if you refer someone who becomes a franchisee *

We are proud to welcome our new Tea Lounge franchisees from Brooklyn and Kuwait to the family!